City regulator facing legal action from companies affected by RBS restructuring

Lawyers representing hundreds of London businesses are threatening the Financial Conduct Authority over its delayed report into the Royal Bank of Scotland's restructuring.

Over 400 companies are being represented in the case, which alleges that if the findings of the investigation into RBS are not published soon, their legal claims will expire.

Almost two years have passed since the original date of publication was missed, and there still seems little sign that the FCA will have news soon.

The group of companies, known as the Business Action Group, wrote to FCA chief executive Andrew Bailey to say it would launch action if it did not receive assurances about the timeline of the report.

Following the financial crisis, attempts were made to restructure RBS's balance sheet by ditching unprofitable assets, but certain companies believe this led to improper procedures, including questionable valuations of assets.